company's designers have discovered a market for a new clear plastic covering with college logos for a popular music player. Market research indicates that a cover like this would sell well in the market priced at $24.00. Sid's desires an operating profit of 25 percent of costs.   Required: What is the highest acceptable manufacturing cost for which Sid's would be willing to produce the cover? (Round your

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 16PB: At Stardust Gems, a faux gem and jewelry company, the setting department is a bottleneck. The...
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Sid's Skins makes a variety of covers for electronic organizers and portable music players. The company's designers have discovered a market for a new clear plastic covering with college logos for a popular music player. Market research indicates that a cover like this would sell well in the market priced at $24.00. Sid's desires an operating profit of 25 percent of costs.
 

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What is the highest acceptable manufacturing cost for which Sid's would be willing to produce the cover? (Round your answer to 2 decimal places.)

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manufacturing cost is all the cost that is needed to make a product . IT include:  direct material,  direct labor and manufacturing overhead.

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